UK: SABMiller sees FY sales climb but Europe, US hamper numbers

• Full-year sales rise by 7% on organic basis
• Lager volumes in year to 31 March up by 3%
• FY volumes slip in Europe, US
• Overall financial performance "in line" with SABMiller expectations

SABMiller has posted a lift in full-year sales, despite continuing struggles in Europe and the US.

In a trading update released this morning (19 April), the brewer said that sales on a value basis in the year to the end of March will be up by 7% year-on-year. In volume terms, lager sales were 3% up, although both European and US operations saw volumes come in down on the previous year.

For the fourth quarter, sales increased by 10%, while volumes improved by 3%. The company said that its financial performance is "in line with our expectations".

In Europe, FY volumes dipped by 1%, with SABMiller blaming "subdued" growth and "competitors aggressively promoting economy brands and packs" for the slip. Russian volumes, however, rose by 2%. Meanwhile, in the US, domestic sales to retailers from the MillerCoors JV fell by 2.4% in the year, with "economic pressure on key consumer demographics" being felt.

Over in Latin America, volumes were up by 8%, with Central American operations delivering a 6% rise. Africa continues to be the jewel in SABMiller's crown, with full-year volumes leaping by 13%. In South Africa, volumes rose by 2%.

Asia Pacific however, offered both good and bad. In China, volumes rose by 9% for the year with "acquisitions enhancing market share". In Australia, though, pro rata volumes for the recently-acquired Foster's beer unit were 4% down in the fourth quarter. SABMiller noted, however, that this represented "a slower rate of decline than the previous quarter".

SABMiller's share price held steady this morning after the update was released.

The brewer will issue its full-year sales numbers and profits in mid-May.

To view the brewer's official announcement, click here.